GLP expands its German portfolio with the acquisition of a 116,000 m2 logistics property in Philippsburg

Frankfurt, 17 April 2024 - GLP, a leading global developer, owner and operator of logistics real estate, data centres and systems for renewable energy and related technologies, is acquiring a logistics property of around 116,000 sqm in Philippsburg in the greater Karlsruhe area as part of a short-term sale and leaseback asset deal.

"We are an active investor in logistics properties that is constantly looking for sites in excellent locations, including existing properties that can be renovated. Despite the current challenging market environment, we are using our experience in property development to buy older existing properties that are suitable for repositioning. Instead of automatically prioritising demolition and new construction, we always think first about the potential for repositioning a building, the environment and an attractive, sustainable increase in value for our investors," says Trung Nguyen, Investment Manager at GLP Germany.

The site is strategically located in the centre of the Rhine-Neckar region between two of Germany's most powerful economic areas, Frankfurt and Stuttgart. Because it is embedded in an economically flourishing region with a strong chemical, pharmaceutical and automotive industry, this logistics market is characterised by very low vacancy rates and stable demand.

GLP plans to convert the building and modernise it in line with its own high sustainability standards. The logistics hall will be converted into a state-of-the-art logistics and commercial property. Its flexible space offering is suitable for a wide variety of potential customers. The offer is initially aimed at tenants with space requirements of between 2,000 m2 and 10,000 m2. Sizes of 50,000 m2 or more are also possible instead of a small-format offer.

GLP acquired the property from the previous owner and occupier. There is a short-term lease agreement with him until the end of 2024, when the previous owner plans to relocate the business. The conversion is scheduled to begin in early 2025.

Sustainability at the centre of the development

Like all of GLP's renovation projects in the German market, the conversion and modernisation of the logistics property in Pilippsburg will be carried out in accordance with the highest standards for environmentally friendly construction solutions. The work will be planned in accordance with the strict environmental protection criteria of the German Sustainable Building Council (DGNB) and realised in accordance with the DGNB Gold standard. Because the focus is on sustainability, future tenants will be able to reduce their energy consumption, CO2 emissions and water consumption, thereby lowering their operating costs.

Cushman & Wakefield brokered the transaction. GLP received technical advice from Drees & Sommer and legal advice from Greenberg Traurig.  

Caption:
The GLP logistics property in Philippsburg. The conversion is scheduled to begin in early 2025.
Image rights: GLP PF Germany Management GmbH

About GLP

GLP is a leading global developer, owner and operator of logistics real estate, data centres and systems for renewable energy and related technologies. With many years of experience and extensive operational expertise, GLP establishes and develops thriving businesses and creates value for its clients. GLP owns assets and manages companies in 17 countries in Asia, Europe, North and South America. GLP Capital Partners, a global alternative investment manager with approximately USD 126 billion in assets under management as of 31 December 2023, is the exclusive investment and asset manager for GLP.

With its commitment to a wide range of ESG principles, GLP aims to enhance its business activities, protect the interests of its stakeholders, show appreciation to employees and customers and promote communities in which GLP locations are located.

Further information can be found at www.glp.com/global

GLP's European portfolio comprises more than 9.7 million square metres of logistics space. It covers selected strategic logistics markets and is let to blue chip customers such as Amazon, DHL and GXO Logistics. The company has a prime portfolio of building plots in Europe, enabling the development of a further 1.7 million square metres. Further information on GLP's European business can be found at https://eu.glp.com/de/.

Press contact:
Peter Tasch
Tasch Communications
Phone: (069) 24 44 68 07
Email: peter@tasch-communications.de